India’s factory activity(PMI) rose for the tenth consecutive month to a 22-month high in October bolstered by a sharp increase in new orders, purchasing activity and output, a private sector survey showed.
The Manufacturing Purchasing Managers’ Index, compiled by Nikkei and Markit, reported a value of 54.4 in October, up from 52.1 in September. A value of more than 50 shows expansion, while one below 50 implies contraction.
“Rising from 52.1 in September to 54.4, the latest reading was indicative of a robust improvement in manufacturing business conditions that was in line with the long-run series average,” the index report said.
“The amount of new work received by manufacturers
grew markedly during October, with anecdotal evidence linking the latest rise to improved underlying demand,” according to the report. “In fact, the rate of expansion was at a 22-month high.”
Consumer goods producers outperformed their intermediate and investment goods counterparts, registering stronger rates of expansion for both output and new orders.
“The breadth of the upturn in manufacturing should assist in its sustainability,” Pollyanna De Lima, economist at Markit and author of the report said. “Although the consumer goods sector again outperformed its intermediate and investment goods peers, all three sectors reported strong and accelerated growth in October. The domestic market was the prime source of new business gains.”